Scope of the Ministry's Role
Through the Anti-Money Laundering and Counter-Terrorist Financing Section at the Department of Corporate Affairs, the Ministry of Commerce and Industry supervises three categories of Designated Non-Financial Businesses and Professions (DNFBPs): auditors, dealers in precious metals and stones, and trust and company service providers. The Ministry also oversees, through the Commercial Registration and Licensing Department, commercial companies' compliance with AML/CFT requirements, including beneficial ownership declarations and the maintenance of mandatory records.
Ministerial Decisions
- Minister of Commerce and Industry Decision No. (64) of 2024 establishing sections within the administrative units of the Ministry of Commerce and Industry and defining their competencies.
- Decision of the Assistant Undersecretary for Commerce Affairs approving the updated 2023 supervisory and regulatory framework for the AML/CFT Section at the Department of Corporate Affairs.
- Ministerial Decision No. (43) of 2022 establishing the Unified Economic Register Section at the Commercial Registration and Licensing Department.
- Minister of Commerce and Industry Decision No. (70) of 2022 amending certain provisions of Ministerial Decision No. (161) of 2017 concerning general and specific requirements for commercial, industrial, and similar establishments.
- Minister of Commerce and Industry Decision No. (2) of 2022 on fulfilling AML/CFT requirements applicable to commercial companies.
- Decision of the Assistant Undersecretary for Commerce Affairs approving the 2020 supervisory framework and structural organization of the AML/CFT Section at the Department of Corporate Affairs.
- Minister of Commerce and Industry Decision No. (48) of 2020 issuing the Rules of Obligations for legal accountants, dealers in precious metals and stones, and trust and company service providers regarding AML/CFT requirements.
- Minister of Commerce and Industry Decision No. (95) of 2019 establishing the AML/CFT Section at the Department of Corporate Affairs.
Ministry Circulars
- Circular No. (7) of 2024 on the obligations of dealers in precious metals and stones regarding AML/CFT requirements, the implementation of targeted financial sanctions, and the prohibition of cash use in transactions.
- Circular No. (5) of 2024 to dealers in precious metals and stones on guidelines for obtaining customer identification and any other required data.
- Circular No. (4) of 2024 on the list of jurisdictions with weak AML/CFT measures.
- Circular No. (3) of 2023 on the list of jurisdictions with weak AML/CFT measures.
- Circular No. (6) of 2022 on the self-assessment questionnaire for subject entities.
- Circular No. (5) of 2022 on identifying transactions in which cash use is prohibited.
- Circular No. (4) of 2022 on the responsibilities and duties of senior management at subject entities.
- Circular No. (3) of 2022 on registration in the electronic notification and feedback programme for implementing UN Security Council and national sanctions list designations and freezing decisions.
- Circular No. (7) of 2021 on the responsibilities and duties of compliance officers and their deputies at auditors, dealers in precious metals and stones, and trust and company service providers.
- Circular No. (6) of 2021 to relevant implementers at the Ministry of Commerce and Industry on the implementation of targeted financial sanctions.
- Circular No. (5) of 2021 to dealers in precious metals and stones on customer identification guidelines and rules for online sales.
- Circular No. (7) of 2020 on the implementation of the Rules of Obligations for auditors (legal accountants), dealers in precious metals and stones, and trust and company service providers regarding AML/CFT requirements.
- Circular No. (6) of 2020 to auditors, dealers in precious metals and stones, and trust and company service providers on high-risk jurisdictions subject to FATF call for action and jurisdictions under increased monitoring.
- Circular No. (5) of 2020 to dealers in precious metals and stones on applying enhanced due diligence measures for non-face-to-face transactions.
Entities Subject to the Ministry's Supervision
Entities subject to the supervision and oversight of the Ministry of Commerce and Industry are bound by a set of AML/CFT obligations set out in Law No. (20) of 2019, its Executive Regulations, and the Rules of Obligations. These obligations include:
- Adopting a risk-based approach by establishing internal policies, procedures, and controls that enable the identification, assessment, understanding, management, and mitigation of ML/TF risks, proportionate to the nature and size of the entity's business.
- Establishing an AML/CFT programme that takes into account the entity's ML/TF risks, the nature, size, and complexity of its business.
- Appointing a compliance officer and a deputy and granting them the necessary authorities to perform their role effectively, objectively, and independently.
- Applying the necessary screening and verification procedures to ensure adherence to the highest competence standards when hiring or appointing employees and officers.
- Establishing an independent audit unit to conduct ongoing and appropriate assessment, review, and testing to verify policy compliance.
- Designing and implementing an ongoing AML/CFT training programme for officers and employees.
- Identifying customers and determining the appropriate level of due diligence and ongoing monitoring, including identifying and verifying beneficial owners.
- Effective internal and external reporting without tipping off.
- Retaining all records, documents, and data of all domestic and international transactions for at least ten years.
Auditors
The auditing profession is regulated under Law No. (8) of 2020. Auditors are considered Designated Non-Financial Businesses and Professions under Article (1) of Law No. (20) of 2019, whether they practice individually, as partners, or as professionals working in professional firms, when preparing, executing, or carrying out transactions on behalf of their clients in the following activities:
- Purchase or sale of real estate.
- Management of client funds, securities, or other assets.
- Management of bank, savings, or securities accounts.
- Organisation of contributions for the creation, operation, or management of companies.
- Creation, operation, or management of legal persons or legal arrangements, and the sale or purchase of business entities.
For the Guide on Auditors' AML/CFT Obligations (2020), please refer to the Ministry's website.
Dealers in Precious Metals and Stones
Dealers in precious metals and stones are considered DNFBPs when they engage in cash transactions with their customers equal to or exceeding QAR 50,000 or its equivalent in foreign currencies. A cash transaction may take the form of a single transaction or multiple linked transactions.
Under Law No. (4) of 2022 regulating cash use in transactions, the use of cash is prohibited in the sale, purchase, or rental of precious metals, stones, and jewellery when the value exceeds QAR 50,000 or its equivalent in foreign currencies.
For the complete regulatory references for dealers in precious metals and stones, please refer to Circular No. (7) of 2024 and the Guide on the AML/CFT Obligations of Dealers in Precious Metals and Stones and on Suspicious Transaction Reporting.
Trust and Company Service Providers
Trust and company service providers are considered DNFBPs under Article (1) of Law No. (20) of 2019 when they prepare or execute transactions for clients in the following activities:
- Acting as an agent for legal persons in the formation of companies.
- Acting as, or arranging for another person to act as, a director or secretary of a company, a partner in a partnership, or a similar position in relation to other legal persons.
- Providing a registered office, business address, correspondence address, or administrative address for a company, partnership, or any other legal person or arrangement.
- Acting as, or arranging for another person to act as, a trustee of a trust or performing an equivalent function for another form of legal arrangement.
- Acting as, or arranging for another person to act as, a nominee shareholder for another person.
For the Guide on the AML/CFT Obligations of Trust and Company Service Providers, please refer to the Ministry's website.
Commercial Companies' Obligations
Legal Framework
- Law No. (1) of 2020 on the Unified Economic Register.
- Law No. (8) of 2021 amending certain provisions of the Commercial Companies Law issued by Law No. (11) of 2015.
- Cabinet Decision No. (12) of 2020 issuing the Executive Regulations of the Unified Economic Register Law.
- Minister of Commerce and Industry Decision No. (2) of 2022 on fulfilling AML/CFT requirements applicable to commercial companies.
- Minister of Commerce and Industry Decision No. (43) of 2022 establishing the Unified Economic Register Section at the Commercial Registration and Licensing Department.
Duty to Maintain Mandatory Records
Commercial companies are required to maintain the following mandatory records:
- Basic information register, together with all supporting documents.
- Register of required information on beneficial owners.
- Register of partners or shareholders.
Commercial companies must maintain these records so they can be made available to the competent authority upon request, whether at the company's head office or at another location that the company is required to notify to the competent department. Records must be kept up to date to reflect any changes in the company's data, ownership structure, or directors.
Designating an Official Responsible for Providing Mandatory Records Information
- Commercial companies must designate at least one natural person residing in the State of Qatar who is authorised to provide all the information contained in the mandatory records and to provide assistance upon request.
- The company's legal representative completes the designation form, which is signed and submitted together with the required supporting documents to the Department of Corporate Affairs and the Commercial Registration and Licensing Department.
- Designating this responsible person does not exempt the company's legal representative from their obligations. The company manager or chairman of the board remains accountable to the competent authority for providing all required information.
Beneficial Ownership Obligations
Under Law No. (1) of 2020 on the Unified Economic Register and its Executive Regulations, declaring the beneficial owner has become a mandatory step in any application for a license, commercial registration, amendment, or renewal. No such application is accepted unless accompanied by a beneficial owner declaration.
The beneficial owner of a commercial company is identified as follows:
- The natural person or persons who directly or indirectly hold an effective controlling ownership interest of no less than 20% of the company's capital or voting rights.
- Where the beneficial owner cannot be identified under the preceding clause, the natural person who exercises effective or legal control by any means, directly or indirectly, over the executive bodies, general assembly, or the running of the company.
- Where no natural person can be identified under the preceding clauses, the beneficial owner is the natural person who serves as the legal representative of the company.
A copy of the beneficial ownership register must be submitted to the Commercial Registration and Licensing Department within ten days of submitting the application, and retained for a period of no less than ten years from the date of the company's dissolution.
Implementation of Targeted Financial Sanctions
Auditors, dealers in precious metals and stones, and trust and company service providers must establish appropriate systems to verify their compliance with the implementation of targeted financial sanctions related to the prevention of terrorist financing and proliferation financing.
To review the obligations of entities under the Ministry's supervision in implementing TFS requirements, please refer to:
- Circular No. (6) of 2021 to relevant implementers at the Ministry of Commerce and Industry on the implementation of targeted financial sanctions.
- Circular No. (3) of 2022 on registration in the electronic notification and feedback programme for implementing UN Security Council and national sanctions list designations and freezing decisions.
High-Risk Jurisdictions
In accordance with FATF Recommendation (19), Article (13) of Law No. (20) of 2019, and Articles (22) and (23) of its Executive Regulations, entities under the Ministry's supervision must apply enhanced due diligence measures, proportionate to risk, on business relationships and transactions with customers from jurisdictions subject to a FATF call for action or identified as high-risk by the National Anti-Money Laundering and Terrorism Financing Committee.
Subject entities must periodically review updates to the list of high-risk jurisdictions and jurisdictions under increased monitoring at the following link:
For the applicable measures, please refer to:
- Circular No. (6) of 2020 on high-risk jurisdictions subject to FATF call for action and jurisdictions under increased monitoring.
- Circular No. (3) of 2023 on the list of jurisdictions with weak AML/CFT measures.
- Circular No. (4) of 2024 on the list of jurisdictions with weak AML/CFT measures.
Guidance Documents and Useful Forms
Guidance Documents Issued by the Ministry
- Guide on Auditors' (Legal Accountants') AML/CFT Obligations, 2020.
- Guide on the AML/CFT Obligations of Dealers in Precious Metals and Stones and on Suspicious Transaction Reporting.
- Guide on the AML/CFT Obligations of Trust and Company Service Providers.
- Guide on Preparing the Independent Review Report on AML/CFT.
- Guide on the Beneficial Owner.
- Compliance Officer's Annual Report: Practical Guidance on preparing and submitting the annual report.
- Guide on Commercial Companies' Compliance with AML/CFT Requirements, 2023.
Useful Forms
- Form for appointing the AML/CFT compliance officer and deputy (2024).
- Form for appointing the official responsible for providing mandatory records information.
- Compliance officer's annual report template.
- Suspicious transaction reporting form for DNFBPs.
- Self-assessment questionnaire for 2024.
- Self-declaration form for Politically Exposed Persons.
Administrative and Financial Sanctions
Article 44 of Law No. (20) of 2019 provides that, where a Designated Non-Financial Business or Profession, or any of its directors, board members, executive or administrative officers, is found to have breached the provisions of the Law, its Executive Regulations, or any decisions or directives concerning AML/CFT, the AML/CFT Section at the Department of Corporate Affairs may take all or some of the following actions:
- Issue written warnings.
- Order the submission of regular reports on the measures taken.
- Order compliance with specific instructions.
- Impose a daily financial penalty on the breaching entity of no less than QAR 25,000 and no more than QAR 100,000 for each ongoing breach following the warning.
- Impose a financial penalty on the breaching entity of up to QAR 100,000,000.
- Impose a financial penalty of up to QAR 1,000,000 on any director, board member, or executive or administrative officer.
- Restrict the powers of directors, board members, or executive or administrative officers; appoint a special administrative supervisor; or place the breaching entity under direct supervision.
- Prohibit the offender from working in the relevant sectors, permanently or temporarily.
- Temporarily suspend directors, board members, or executive or administrative officers, or request their removal or replacement.
- Suspend the license or restrict any other type of authorisation, prohibit the continuation of the business, profession, or activity, or remove the name from the relevant register.
- Withdraw and cancel licenses and strike off registration.
Decisions imposing administrative and financial sanctions are issued by the Director of the Department of Corporate Affairs upon recommendation of the Head of the AML/CFT Section, following review of breach files identified by the off-site and on-site supervision and targeted financial sanctions teams.
Appealing Decisions
Subject entities may appeal decisions imposing administrative or financial sanctions to the Assistant Undersecretary for Commerce Affairs, in accordance with the procedures and forms set out in Articles 64 and 65 of the Executive Regulations of the AML/CFT Law.
